The Russian investor stalking HMV has tabled a £43 million offer for its Waterstone’s chain.

HMV is considering the bid from Alexander Mamut, which is far less than its initial expectation of £70 million.

Mr Mamut, the owner of the blogging site Livejournal, is working alongside the chain’s founder, Tim Waterstone. HMV confirmed last night that it was in “advanced discussions” in a post-close announcement.

HMV is seeking to sell Waterstone’s to placate its banks. It was given a stay of execution on a key banking covenant test earlier this year while it sought a restructuring solution under which it